The Central Bank of Montenegro (CBCG) held a series of meetings with representatives of all commercial banks to support consistent implementation of the Law on Consumer Credits, which has applied since November 2025. Discussions focused on banks’ practical experience to date, operational implementation issues, and clarification of open questions, with the CBCG assessing that rollout is progressing with good sector preparedness alongside expected operational adjustments. The CBCG highlighted the law’s consumer protection changes, including a statutory cap on the effective interest rate for consumer loans to limit total borrowing costs. The framework also abolishes processing and early repayment fees for consumer loans secured by immovable property, introduces stricter creditworthiness assessments, strengthens transparency and consumer information standards, and requires creditors to take reasonable steps to reach agreement with borrowers in financial difficulty before initiating enforcement. Within its remit, the CBCG plans further proactive expert support through initiatives, thematic meetings, and other communication with banks to promote harmonised market practice and full, consistent application of the law.
Central Bank of Montenegro 2026-02-19
Central Bank of Montenegro holds implementation meetings with banks on consumer credit law introducing an effective interest rate cap
The Central Bank of Montenegro (CBCG) is facilitating the implementation of the Law on Consumer Credits, effective since November 2025, through meetings with commercial banks. Key changes include a cap on effective interest rates, elimination of certain fees, stricter creditworthiness assessments, and enhanced consumer protection measures. The CBCG plans ongoing support to ensure consistent application and harmonized market practices.